I've read a few times that CEOs elect to draw a salary of $1 now and then (of course they probably get a $3 million bonus). I assume that the CEO still qualifies as a full time employee for things like health insurance, but clearly $1. is less than the minimum wage. Can a CEO elect to make less than the minimum wage and still be considered a full-time employee? Or do benefits count toward minimum wage conditions? Tommy
>
>
>
>
>
>
>
>
>
Sure, they are exempt employees. The Wage-Hour Act (I think that's what it's called, or once was called) does not apply to them.
Steve
"Arnie" wrote
See response to your previous question on this subject.
-- Vic Roberts Replace xxx with vdr in e-mail address.
There are many small business owners who, at times, do not make minimum wage, or even take a salary, but work their @sses off seven days a week. It's one of the risks or being in business to begin with - the risk of loss. In cases like that, we make notes in the minute book that the salary is "to be paid" at a later date. Then we hope the business improves so it can do just that. One would have to look at the suitability of paying for benefits when the business is in a cash crunch. But there may be audit troubles if there is no salary to individuals who are receiving "employee" benefits. And no, I've never seen a W-2 for $1.
-- Paul A. Thomas, CPA Athens, Georgia
Qs & As on the minimum wage:
Have something to add? Share your thoughts — no account required.
Ask the community — no account required